creditHaving bad credit can really suck out your will to do better. It’s like Garth on Wayne’s World getting a hair cut. “It’s sucking my will to live!” Bad credit can feel this way. It can bring a dark rain cloud over our head that follows us around everywhere because it’s chained to our neck by a money noose. There are many ways to find ourselves in this situation but the main deal now is how to get out of the situation.

There is a concept I was reading about the other day that described negative debt and positive debt. Although debt is not really a good thing, especially when it has taken over and is ruining our financial situation, there are aspects to debt that can be considered positive.

Positive debt is the type that enables you to move forward into the future and continue to make money. This type of debt can manifest itself in different ways. One situation is the need to have transportation to get to work. If your old beat up hooptie dies on the side of the road and you can’t afford to buy a “new” used car, then you might find yourself in a spot where a little positive debt would be really helpful for your future.

Mortgages are another type of positive debt. Trying to save enough cash to buy a house is nearly impossible, but if you can pay it off over the course of years a little at a time, then you might consider this positive debt. It will allow you a home to work from and relax in while you figure out ways of moving forward, all while paying increments to ultimately own it. As a matter of fact, you do own it because you paid for it with money you borrowed from the bank. This is not the time for bad money management, that’s for sure. If you decide to look at taking on positive debt, just make sure you have changed the bad habits that got you in trouble.

These positive debts can help you to move forward and repay some of the negative debt you have accumulated. If you do it right, it can really help to improve your bad credit rating, too. There are loans for people with bad credit out there, but you will face super high interest rates for the mistakes you have made in the past. It’s a good idea if you think you have changed your lifestyle and can handle taking on this kind of debt along with any negative debt you may carry. Handle it properly and you will find positive results to your bad credit score enabling you to have more options in the future.

There are some loans you should avoid at all costs, like payday loans. These types will charge you at least a 15% interest on your loan and call it in by the time you get your paycheck. That will only make matters worse because not only do you lose part of your paycheck but it’s gone by the time you would need it again! That’s a downward slope that is hard to climb again.

The best option is to change your habits and repair your score slowly but surely. Don’t keep singing those bad credit blues!